JAKARTA. The latest financial report of Bank Negara Indonesia (BNI) shows that in the third quarter of 2016 the bank booked a 28.7% of profit growth to IDR 7.72 trillion from IDR5.99 trillion in the same period in 2015. The report also reveals that the net interest revenues of BNI also increased by 15% to IDR 21.81 trillion, while the non-interest revenues increased by 20% to IDR 6.24 trillion.

The interest revenues rise was generated by a 21.1% of increase of credit allocation that amounted to IDR 372.02 trillion. "We target to have a 16%-17% credit growth by the end of 2016", said President Director of BNI Achmad Baequni.

During the period, the credit allocation to State Owned Enterprises (SOEs) grew by 32.1% to IDR70.97 trillion, while the minimum credit, minor credit, and consumer credit grew by 30.9% to IDR 60.73 trillion, by 27.5% to IDR 49.66 trillion, and by 14.4% to IDR, respectively.

According to Baequni, credit may grow higher, thanks to demands for take-over credit and new credit. However, BNI cannot fulfill all the demands due to liquidity limitation.

In the third quarter of 2016, the loan to deposit ratio (LDR) of BNI increased by 92.8%. In order to maintain liquidity, BNI target to secure a 15%-16% growth of third party funds.

BNI predicts that the net profit of the bank will continue to grow at below the level of 20% by the end of 2016.

Another SOE bank BRI or Bank Rakyat Indonesia has not yet released its performance report. However, Financial Director of BRI Haru Koesmahargyo said that BRI tends to have flat profit in September 2016.

"The profit growth during the third quarter of 2016 is lower than in the second quarter", said Haru. During the second quarter of 2016, BRI booked a 1.6% of net profit.

Meanwhile, Financial Director of Bank Mandiri Pahala N. Mansury said that the bank has not yet booked profit rise in this year, on the grounds that bank still focuses in dealing with non-performing loan (NPL). Nonetheless, the decrease in profit will not exceed 20% by the end of 2016.

(MUHAMMAD FARID/Translator)

Editor: Rizki Caturini